What is the meaning of 'Operating' expenses for Better Homes And Gardens Real Estate?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
uite 160 | Wichita | KS | 67202 | (316) 688-0077 | | Central | 1607 Winchester Avenue | Ashland | KY | 41101 | (304) 201-7653 | | Fern Leaf Group | 2018 Broadway | Paducah | KY | 42001 | (270) 415-5623 | | Rhodes Realty | 1234 Texas Avenue | Alexandria | LA | 71301 | (318) 238-3733 | | Tiger Town | 17461 Jefferson Hwy, Suite A | Baton Rouge | LA | 70817 | (225) 755-7022 | | Rhodes Realty | 104 East Texas Street | Leesville | LA | 71446 | (318) 238-3733 | | Rhodes Realty | 1221 Cocoville Road | Mansura | LA | 71350 | (318) 238-3733 | | Rhodes Realty | 404 Rapides Drive | Natchitoches | LA | 71457 | (318) 238-3733 | | Rhodes Realty | 145 B Main Street | New Iberia | LA | 70560 | (318) 238-3733 | | Rhodes Realty | 2304 Commons Court, Suite 3 | Ruston | LA | 71270 | (318) 238-3733 | | Lindsey Realty | 839 Kings Highway, Suite 225 | Shreveport | LA | 71104 | (318) 990-2737 | | Rhodes Realty | 425 Ashley Ridge, Building 300, Suite 350 | Shreveport | LA | 71106 | (318) 238-3733 | | Veranda Realty | 107 Regency Place, Suite D | West Monroe | LA | 71291 | (318) 325-1869 | | The Shanahan Group | 552 Main Street | Winchester | MA | 01890 | (781) 729-9030 |
| MAKER: | ___________________________ |
|---|---|
| CO-MAKER(S): | ___________________________ |
| HOLDER: | BETTER HOMES AND GARDENS REAL ESTATE LLC |
| PLACE FOR PAYMENT: | 175 PARK AVENUE, MADISON, NJ |
| PRINCIPAL: | $__________________ |
| ANNUAL INTEREST RATE: | 0%, EXCEPT AS DESCRIBED BELOW |
| MATURITY DATE: | December 31, 20__ |
| MAKER: | ___________________________ |
| CO-MAKER(S): | ___________________________ |
| HOLDER: | BETTER HOMES AND GARDENS REAL ESTATE LLC |
| PLACE FOR PAYMENT: | 175 PARK AVENUE, MADISON, NJ |
| PRINCIPAL: | $__________________ |
| ANNUAL INTEREST RATE: | 0%, EXCEPT AS DESCRIBED BELOW |
| MATURITY DATE: | December 31, 20___ |
| and restoration of Debtor’s facilities or Offices (as defined in the Franchise Agreements). | |
| SECTION 5 -- DUTIES | OF SECURED |
| (In millions, except per share data) | |
| Revenues | |
| Gross commission income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | |
| Service revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 574 569 793 |
| Franchise fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 356 351 417 |
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 133 146 160 |
| Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,692 5,636 6,908 |
| Expenses | |
| Commission and other agent-related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,718 3,664 4,415 |
| Operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,125 1,147 1,377 |
| Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 195 215 252 |
| General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 392 422 388 |
| Former parent legacy cost, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2 18 1 |
| Restructuring costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 32 49 32 |
| Impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20 65 483 |
| Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
Source: Item 23 — RECEIPTS (FDD pages 76–362)
What This Means (2025 FDD)
According to the 2025 FDD, the term 'Operating' expenses for Better Homes And Gardens Real Estate is listed as part of the company's expenses. The FDD lists the operating expenses for 2022, 2023, and 2024. In 2022, the operating expenses totaled $1,377 million. In 2023, the operating expenses totaled $1,147 million. In 2024, the operating expenses totaled $1,125 million.
These figures are significant for prospective franchisees as they provide insight into the scale of Better Homes And Gardens Real Estate's operational costs. While the FDD does not specify what these operating expenses include, it is important to note that these expenses constitute a substantial portion of the company's total expenses. Understanding the trend of these expenses over the years can help potential franchisees assess the financial stability and efficiency of the franchisor.
However, the FDD does not provide a detailed breakdown of what specific costs are included within 'Operating' expenses. This lack of transparency makes it difficult for potential franchisees to fully understand where Better Homes And Gardens Real Estate is allocating its resources. It is essential for prospective franchisees to seek clarification from the franchisor regarding the specific components of operating expenses to gain a comprehensive understanding of the franchise's financial operations.
To gain a clearer understanding, prospective Better Homes And Gardens Real Estate franchisees should ask the franchisor for a detailed breakdown of what is included in 'Operating' expenses. This will allow them to better assess the financial health and stability of the franchise and make informed decisions.